API acquires Clearskin care

LISTED verticallyintegrated supplier of pharmaceuticals Australian Pharmaceutical Industries

(API) has announced via the ASX that it has entered binding agreements to acquire the assets of Clearskincare Clinics for $127.4 million, to be paid in instalments over a three-year period (PD Breaking News today).

The company will initially acquire a 50.1% controlling interest in the clinic business to be concluded by 31 Jul 2018, followed by the full acquisition of the remainder of the business by Sep 2021.

Clearskincare Clinics is a major supplier of non-invasive aesthetic services such as laser hair removal, skin treatments and cosmetic injectables, with 42 clinics in Australia and two in New Zealand as well as an exclusive skincare product range.

API said that with its strong operational capabilities in network growth, retail marketing and consumer goods development, the acquisition will accelerate Clearskincare Clinics’ already strong earnings position, making the arrangement “highly compelling and complementary”.

API md and ceo Richard Vincent said, “The Acquisition fulfils our criteria for aligning with a robust business in a burgeoning sector of the health and beauty market, that is services-based and away from government funding, and to which we can add further value for customers, clinic teams and shareholders.

“It delivers API shareholders the next stage of API’s development strategy through having a more diversified business with accelerated growth potential due to accessing an early stage, rapidly growing market with professional healthcare services.”

The ASX announcement said API expects the impact of the acquisition to be EPS positive in FY19, generating proforma revenue and EBITDA of approximately $48 million and $14 million respectively.